Nepal has authorized Indian and Nepalese nationals to carry Indian rupee notes of ₹200 and ₹500 denominations across the border, up to a limit of ₹25,000.
The new regulation applies only to currency issued on or after November 9, 2016, effectively excluding older series from circulation in cross-border transactions.
The policy adjustment targets the practical friction faced by tourists and traders who frequently cross the open border.
With India being Nepal’s largest trading partner and source of foreign visitors, the allowance simplifies cash transactions for the estimated 1.5 million Indian nationals who enter Nepal annually.
The restriction to post-2016 notes aligns with India’s demonetization drive and ensures that only current-series currency enters the Nepalese economy.
This development follows a broader trend of financial liberalization in South Asia.